A project that first came on the scene in Cape Coral in 2015 has receiived final approval from the City Council. This week, by a vote of 7-0 the Cape Coral City Council approved a Development Agreement between the city and Forrest Development to begin construction of the massive Seven Islands project.
Seven Islands is located in the southwest area of the Northwest Cape. The Seven Islands development is approximately 48 acres including seven ‘islands’ and 46 adjoining properties located along Old Burnt Store Road. When completed, the new development is expected to include 995 residential units, a 10-story 240-room hotel, a marina with 39 slips, an outdoor amphitheater, community center, playground, splash pad, restroom pavilion, waterfront park with outdoor seating, a food truck park and a dog park.
The city will kick in $2.5 million in financial incentives; $1 million will be paid after the marina is completed, $1 million will be paid after the hotel is up and running, and $500,000 will be paid the community center is open. In order to get the money, the developer must complete the marina within 8 years, the hotel within a decade and the community center within 6 years. If those elements are not completed on time, the incentives are reduced by 10% every year they are late. The developer must also complete road improvements, irrigation, and landscaping on Old Burnt Store Road as part of the Development Agreement.
Forrest Development is purchasing the land from the City. The city came into possession of the Seven Islands property about 10 years earlier. The city bought about 650 acres of foreclosed properties, including the Seven Island property for only $13.7 million. The city used money from the stormwater and water and sewer funds to help fund the purchase. That turned out to be a great decision. The appraised value of the Seven Island property alone was $20 million in 2021.
Forest Development will pay $20 million for the 48 acres. A closing is expected to take place next month. After repaying the city’s stormwater and water and sewer funds about $4 million, and calculating in the $2.5 million in economic incentives mentioned above, the city netted about $13.6 million on the sale.
The project will be built in phases and take at least 10 years to complete.
Forrest Development is building the project which is called Gulf Gateway Resort & Marina. Managing Partner Peter Baytarian said the company is excited to get the work started and the plan is to start with the community center. He did not give an exact date for a groundbreaking but did say he’s expecting to get approval for Army Corp of Engineer permits soon for the sewalls and boat docks.
Mayor John Gunter said this is an incredible project that will bring much needed amenities to that area of Cape Coral. “It’s a great project. We wish we could snap our finger and get it done but we know this will be done in phases.”
The Northwest Cape Coral Neighborhood Association has been fully supportive of the project. Kevin Black is the President. “Gulf Gateway Resort and Marina Village will provide the residents of NW Cape Coral amenities such as restaurants, amphitheater, shops, dog park and a community center that we envision as a vibrant hub for residents and visitors. We believe this project will serve as a gathering place that brings people together, elevates quality of life, and increase property values in NW Cape Coral, all while being accessible by multiple modes of transportation and fostering a true neighborhood feel”
Citty Council member Joe Kilraine said, “This is a perfect example of a neighborhood group, a developer, and the city working together over a long period of time. It’s the right way to do a project.“
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